According to The Transition of Boulder City, Nevada, from Status as a Federal Municipality to a Municipal Corporation with Home Rule, by Bachelor of Science student Lee E. Walker, Boulder City was faced with some serious issues regarding its sustainability post-construction and the possibility of transitioning from a Federal Reservation to actual city.

One of the unique problems which was a constant concern of the Federal administrators, and which will likely remain so for elected local officials, is the location of a "squatters" development on the suburb of Boulder City called McKeeversville. Ironically, in spite of the efforts to establish a Utopian planned community, McKeeversville has existed even longer than has Boulder City, as a completely planless slum area. Perhaps even more ironical is the fact that its location is as choice as any in the area – overlooking Lake Mead. Bureau officials apparently hoped that it would disappear as facilities became available. In fact, a rather determined effort was made to evacuate those who had erected "habitations" on land which they neither owned nor had lease to.

This drive was almost successful, for by 1940, only four or five families remained. With the war, however, came a new expansion, and McKeeversville grew to sixty families and acquired the rather sophisticated name of "Lakeview." But, as previously, no semblance of order was evident. Tents were pitched indiscriminately on power and water lines, with no thought except a place to provide minimal shelter. Many structures were later converted to more habitable dwellings, but no thought was given by the dwellers, apparently, as to the utility of a community plan. Over the years, some of the structures were actually sold, though the seller had no deed or lease to the property.

The Bureau of Reclamation, in September 1948, accepting what seemed to inevitable, and with no apparent desire to evict the squatters, announced a plan of development for the area. Apparently, some attempt was made to establish lots and streets. Not much progress seems to have been made, for in March 1953 Lakeview residents were notified by letter that their electricity would be discontinued unless wiring was improved to meet the safety standards.